India has secured significant benefits under its free trade agreement (FTA) with the United Kingdom, providing a boost to both exporters and professionals working overseas.
One of the biggest gains is for the steel sector. Under the agreement, about 85% of India’s steel exports to the UK will remain exempt from Britain’s upcoming safeguard measures, protecting Indian shipments from restrictive trade actions planned by London. This removes a major hurdle that had threatened the smooth implementation of the trade pact.
The deal also delivers relief for thousands of Indian professionals working in the UK. The two countries have agreed to extend social security contribution exemptions from three years to five years for employees temporarily posted abroad. This means eligible workers and employers will avoid making dual social security payments in both countries during the exemption period.
Government officials estimate that 90-95% of Indian professionals sent to the UK by Indian companies could benefit from the arrangement, reducing costs for both employees and businesses.
The India-UK FTA is scheduled to come into effect on July 15 and is expected to strengthen trade, investment and workforce mobility between the two countries. The agreement is also expected to create new opportunities across sectors including manufacturing, services and technology.
Trade experts say the latest concessions address two of India’s key concerns during negotiations. By securing market access for steel exports and easing social security burdens on professionals, the agreement is expected to enhance India’s competitiveness in the UK market while supporting businesses operating across both countries.
The deal marks another step in deepening economic ties between India and the UK, with both nations aiming to expand bilateral trade and investment in the coming years.
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